IBM to buy Cognos for $5 billion

Big Blue to purchase Canadian business software maker for $58 a share in cash.

International Business Machines Corp. has agreed to buy Canadian business software company Cognos Inc. for about $5 billion, or $58 per share in cash, the companies said Monday.

The per-share price represents a 9.5 percent premium to Cognos closing price of $52.98 on Friday. The deal is expected to close in the first quarter of next year, subject to regulatory clearance and Cognos shareholder approval.

Ottawa, Ontario-based Cognos has about 4,000 employees worldwide and serves more than 25,000 customers.

After the deal is completed, IBM will integrate Cognos as a group within IBM's information management software division, focused on business intelligence and performance management. IBM will name current Cognos President and CEO Rob Ashe to lead the group, reporting directly to General Manager Ambuj Goyal.

Source - CNN Money